A quarter of UK cigarettes are ‘duty free’

Monday 19 November 2012 11:41 BST

Man lighting a cigarette

One in four cigarettes smoked in London has not had any UK duty paid on it, according to research.

Japan Tobacco International, the owner of Silk Cut maker Gallaher, has conducted a secret shopping spree around north-west London revealing a huge range of counterfeit cigarettes and rolling tobacco being sold for around half the retail price.

The firm believes that after two of the largest duty hikes in the last two Budgets (a total of 70p on a pack of 20) the rate of smuggling and production of counterfeits is set to soar.

Recent research showed that 23.3% of cigarettes smoked in the capital and a staggering 44% of rolling tobacco had avoided UK taxes — almost 50% higher than the national average. It is estimated that nationally the Treasury lost £2.9 billion last year from the illegal tobacco trade.

Martin Southgate, JTI’s UK managing director, believes the Government’s moves to reduce the display of tobacco and introduce plain packaging do not help. He said: “These measures will … only increase the illegal trade in tobacco.”